Is BR my only option?

betterlatethannever

Hello
i did an soa a while ago and though i got loads of useful advice, no one was able to lower it much.
I have since managed to get HB and have sorted out exactly my incomings and expenditure. Tonight i contacted CCCS and have appointment in a few weeks for an interview.
My question though is, my ESSENTIAL outgoings come to £134 a month more than my incomings.
As there will be nothing to pay off my debts will i be forced into bankruptcy?
(i'll worry about where i find the rest of the money to live on at some point soon, though it seems an overwhelming thought!)
Thanks
(also posted on debt free board but was suggested i post here too)

AlanD_3

Unless you are made bankcrupt by a creditor it is your choice.

Without knowing all the ins and outs of your SOA etc it is hard to give too much advice. CCCS was VERY helpful for us and they will be able to give you very clear and impartial advice. The call is nothing to worry about it will put your mind at rest.

Have a good read of some of the threads on here about BR. My own thread (probably about 3 pages back now) has several questions and answers about BR on it and I found it helped a lot.

If your expenditure is greater than your income then BR will not help you in the long run. That is something that will need addressing sooner rather than later (appart from anything else you will need to save for the filing fee). Living outside your means will end up putting you back into debt.

Assuming that you get your expenditure at least down to a break even point then there will be nothing left for an IVA or DMP. This does suggest that you should be, at least, considering BR as an option.

Without you SOA and details of your debt I'm hesitant to go further than that.

Speak to CCCS. If BR is the way to go then don't panic about it and DON'T put it off unless you have a realistic alternative. Many folks on here have and because of it they have gotten themselves into greater problems and have ended up living with their debts for much longer than they should have. I would have been debt free years ago and could well have free with a rebuilt credit score and possibly a mortgage by now if we'd done it when we first were advised to.

From all I've read etc this is not an easy way out or something to rush into but it IS a solution and IT IS sometimes the ONLY realistic one.

I hope this helps.

betterlatethannever

Thanks Alan, your right i do have to address the problem of my essential outgoings exceeding my incomings, but (frustratiingly) i don't know how too.
Im caught in the benefit trap, if i earn more i lose out on HB and TC so more hours wouldn't actually solve much - unless i could do 60 hours a week at £10 ph. as if!
I know there are ways of making money but i don't even seem to be able to do that. I have nothing to sell on ebay etc.
Banging my head against the proverbial.
Thanks for you reply though and as soon as i have the chance i'll search this board for help.
Roll on my CCCS interview, then maybe things will be clearer.

AlanD_3

betterlatethannever wrote: »

Thanks Alan, your right i do have to address the problem of my essential outgoings exceeding my incomings, but (frustratiingly) i don't know how too.

Roll on my CCCS interview, then maybe things will be clearer.

No problem. It is key. If you feel up to it you can post a SOA on here and others will advise.

You will feel better after CCCS, I promise you.

allofadither

betterlatethannever wrote: »

Hello
i did an soa a while ago and though i got loads of useful advice, no one was able to lower it much.
I have since managed to get HB and have sorted out exactly my incomings and expenditure. Tonight i contacted CCCS and have appointment in a few weeks for an interview.
My question though is, my ESSENTIAL outgoings come to £134 a month more than my incomings.
As there will be nothing to pay off my debts will i be forced into bankruptcy?
(i'll worry about where i find the rest of the money to live on at some point soon, though it seems an overwhelming thought!)
Thanks
(also posted on debt free board but was suggested i post here too)

I was in a similar position to you when I spoke to CCCs. My OH was actually paying my debts and CCCs advised me that since I didn't have an income of my own (bar benefits) then an IVA/DMP would not be acceptable to my creditors. The reasoning behind that is that they would be relying on a third party for their money without any real guarantee of payment.

It was the same story whoever I spoke to, so although i didn't start off looking for bankruptcy it found me anyway and the rest as they say is history.

betterlatethannever

Ok my SOA. heartbreaking stuff!!

incomings. all pcm

wages: £580 (some overtime available-can't increase too much otherwise i lose HB and i'm working for nothing-terrible)
Tax Credits £152 (this could change soon, thoug i'm not sure whether it will go up or down)
HB £266- doesn't kick in in full until mid June
total. £998 pcm + Also note that i have a 17 year old child living with me, She works very part time at the mo after leaving college. She is being made redundant next week. She presently gives me £25 a week. Not sure what will happen when she loses her job.

outgoings.
Rent £595
insurance £10
C Tax £81
Water £28
Phone/internet/mobile £36
Travel to work £30 (ish, sometimes i walk but its a fair distance)
Attachment to earning for unpaid CT £40
housekeeping £180 - all food cleaning toiletries etc
contact lenses £8
TV licen: £11,
Total £1019



Thats all apart from i need some money for hair/clothes/emergencies etc. only a little though cos i am good and quite frugal.
I hope someone can pick that to pieces and come up with a 'miracle;
Thanks

betterlatethannever

Forgot to add i am a little over £18.000 in debt to CCs and overdraft

moanymoany

Have you tried the Snowball. https://www.whatsthecost.com There are lots of references to it on the threads and lots of people saying how helpful it is.

betterlatethannever

Thanks moany, i just tried that but one of the first questions was :
Including your minimum debt repayments, how much per month do you want to spend on servicing your debt?
well i would love to give them something, anything, but as you can see from my SOA i have NOTHING to offer.

betterlatethannever

Sorry, been a long day for me too, dam how could i forget that massive part of my money drain.
Gas and elec is approx £55 pcm.
I have one daughter, but as i mentioned she is about to lose her job though at present she gives me £25 pw from her wages -she only has a part time job though (low paid) that will end in about 2 weeks. She is looking at her options at the mo and may go back to college to help me out a little if she can't find a full time job.

allofadither

Based on your wages I don't think you're receiving enough WTC and HB. I realise you must have given them the right info about your income but I wonder if it's worth checking with them again...I only suggest this cos I've had experience of underpayments.

I can't really see how you can reduce your outgoings anymore.